New Delhi, Feb 11 || Gold prices surged moderately, while silver surged sharply on Wednesday, buoyed by hopes of a more accommodative Federal Reserve amid soft US consumer spending data.
MCX gold April futures climbed 0.71 per cent to Rs 1,57,909 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures gained 2.67 per cent to Rs 2,59,300 per kg.
The dollar index eased to 96.59 on Wednesday from 96.80 in the previous session, making greenback-backed bullion slightly cheaper for overseas buyers. The weakness in the dollar also contributed to the rally in precious metals.
In the international commodity markets, gold and silver prices inched up as US Treasury bond yields declined following weak December retail sales data.
Analysts said that December retail sales fell short of expectations, signalling a slowdown in consumer spending and igniting concerns about slowing growth.
Markets are currently pricing in at least three rate cuts this year, up from two earlier this week -- a major tailwind for bullion due to expectations of a more relaxed monetary policy.